- To provide more than $1 million in annual
operating cost savings due to lower electricity cost -- Improves
the Madera plant’s carbon intensity score -- $10 million SolarPACE™
financing structure represents the largest solar power project in
the program’s history –- Qualifies for Energy Investment Tax Credit
-
Pacific Ethanol, Inc. (NASDAQ:PEIX), a leading
producer and marketer of low-carbon renewable fuels in the United
States, announced it is installing a 5 megawatt (MW) solar
photovoltaic (PV) power system designed and built by Borrego Solar
Systems at Pacific Ethanol’s Madera, California plant. The solar PV
system is expected to reduce Pacific Ethanol’s operating costs and
improve its carbon score.
Neil Koehler, the company’s president and CEO,
stated: “The integration of solar power at our Madera plant
underscores our commitment to optimize our plant assets, lower the
carbon intensity of our ethanol and reduce our operating costs. We
are proud to build the first ever commercial solar electricity
system at a U.S. ethanol plant. Pending the completion of
interconnection agreements with our local utility, Pacific Gas
& Electric Co., we expect to begin operating the solar PV
system at full capacity in early 2018.”
5 MW Solar PV System
Through the displacement of more than 30 percent
of the grid electricity currently used, the solar PV system is
expected to reduce the Madera facility’s annual utility costs by
more than $1 million as well as drive premium pricing on the
ethanol produced due to improvements in its carbon-intensity score.
The system also qualifies for the Energy Investment Tax Credit,
further improving its attractive investment profile.
“Pacific Ethanol represents the new generation
of fuel companies—low carbon fuel production powered by zero carbon
energy,” said Chris Otness, Borrego Solar project developer. “This
will be one of the largest single-site net metered projects in
PG&E territory. Historically these types of projects were
limited to a single megawatt, but given the recent CPUC NEM 2.0
ruling, large energy users are now able to go above that threshold
and offset a significantly larger portion of their overall usage.
In addition, by financing this project through PACE, Pacific
Ethanol is able to retain full ownership of the system from day one
and capture the tax incentives afforded to solar system
owners.”
SolarPACE™ Program
Financing
Pacific Ethanol financed $10 million of the
expected $11 million total investment through the CleanFund
SolarPACE program for a term of 20 years, which enables immediate
net cost savings and positive cash flow from the project.
Greg Saunders, chief executive officer of
CleanFund, stated, “We are honored Pacific Ethanol selected
CleanFund as its capital partner and is utilizing our SolarPACE
financing partner program to provide long-term financing for a
state of the art solar system. The demand for commercial PACE
financing continues to grow rapidly because it represents a
large-scale opportunity to provide cost-effective, long-term
financing for renewable energy, energy efficiency and water
conservation measures for most non-residential properties. We are
excited to partner with Pacific Ethanol as it leads the way in the
deployment of renewable energy power systems at its industrial
facilities.”
CleanFund Commercial PACE Capital is the #1
direct provider of long-term financing for energy efficiency, water
conservation, renewable energy and seismic improvements to
commercial, multifamily and other nonresidential properties in the
U.S. For more information, please visit www.CleanFund.com.
About Pacific Ethanol, Inc.Pacific
Ethanol, Inc. (PEIX) is the leading producer and marketer of
low-carbon renewable fuels in the Western United States. With the
addition of four Midwestern ethanol plants in July 2015, Pacific
Ethanol more than doubled the scale of its operations, entered new
markets, and expanded its mission to advance its position as an
industry leader in the production and marketing of low carbon
renewable fuels. Pacific Ethanol owns and operates eight ethanol
production facilities, four in the Western states of California,
Oregon and Idaho, and four in the Midwestern states of Illinois and
Nebraska. The plants have a combined production capacity of 515
million gallons per year, produce over one million tons per year of
ethanol co-products such as wet and dry distillers grains, wet and
dry corn gluten feed, condensed distillers solubles, corn gluten
meal, corn germ, corn oil, distillers yeast and CO2. Pacific
Ethanol markets and distributes ethanol and co-products
domestically and internationally. Pacific Ethanol’s subsidiary,
Kinergy Marketing LLC, markets all ethanol for Pacific Ethanol’s
plants as well as for third parties, with over 800 million gallons
of ethanol marketed annually based on historical volumes. Pacific
Ethanol’s subsidiary, Pacific Ag. Products LLC, markets wet and dry
distillers grains. For more information please visit
www.pacificethanol.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995Statements and
information contained in this communication that refer to or
include Pacific Ethanol’s estimated or anticipated future results
or other non-historical expressions of fact are forward-looking
statements that reflect Pacific Ethanol’s current perspective of
existing trends and information as of the date of the
communication. Forward looking statements generally will be
accompanied by words such as “anticipate,” “believe,” “plan,”
“could,” “should,” “estimate,” “expect,” “forecast,” “outlook,”
“guidance,” “intend,” “may,” “might,” “will,” “possible,”
“potential,” “predict,” “project,” or other similar words, phrases
or expressions. Such forward-looking statements include, but are
not limited to, market conditions, including the supply of and
demand for ethanol and co-products; growth for these products;
expectations regarding the capacity, cost savings, effects on
carbon intensity and premiums for low-carbon ethanol, and timing of
the Madera plant’s solar PV system as well as tax credits
associated with the system; and Pacific Ethanol’s other plans,
objectives, expectations and intentions. It is important to note
that Pacific Ethanol’s plans, objectives, expectations and
intentions are not predictions of actual performance. Actual
results may differ materially from Pacific Ethanol’s current
expectations depending upon a number of factors affecting Pacific
Ethanol’s business. These factors include, among others, adverse
economic and market conditions, including for ethanol and its
co-products; fluctuations in the price of oil and gasoline; raw
material costs, including ethanol production input costs; changes
in governmental regulations and policies; energy costs; the risks
and uncertainties normally incident to construction projects; and
insufficient capital resources. These factors also include, among
others, the inherent uncertainty associated with financial and
other projections; the anticipated size of the markets and
continued demand for Pacific Ethanol’s products; the impact of
competitive products and pricing; the risks and uncertainties
normally incident to the ethanol production and marketing
industries; changes in generally accepted accounting principles;
successful compliance with governmental regulations applicable to
Pacific Ethanol’s facilities, products and/or businesses; changes
in laws and regulations; changes in tax laws; the loss of key
senior management or staff; and other events, factors and risks
previously and from time to time disclosed in Pacific Ethanol’s
filings with the Securities and Exchange Commission including,
specifically, those factors set forth in the “Risk Factors” section
contained in the Company’s Form 10-Q filed with the Securities and
Exchange Commission on August 5, 2016.
Company IR Contact:
Pacific Ethanol, Inc.
916-403-2755
866-508-4969
Investorrelations@pacificethanol.com
IR Agency Contact:
Becky Herrick
LHA
415-433-3777
Media Contact:
Paul Koehler
Pacific Ethanol, Inc.
916-403-2790
paulk@pacificethanol.com
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